Ammon News - The European Central Bank cut interest rates as expected on Thursday, easing for the seventh time in the past year as U.S. tariffs and faltering business confidence sap already weak economic growth.

Arguing that inflation is well on its way to the 2% target, the central bank for the 20 nations sharing the euro cut its deposit rate by 25 basis points to 2.25%, in line with the expectation of most economists polled by Reuters.

"Increased uncertainty is likely to reduce confidence among households and firms, and the adverse and volatile market response to the trade tensions is likely to have a tightening impact on financing conditions," the ECB said.

"These factors may further weigh on the economic outlook for the euro area," the ECB said in a statement.

The change comes as interest rates are now at the top end of the ECB's "neutral rate", a level which neither restricts nor stimulates economic growth. Reuters